New York City remains home to roughly double the number of hedge-fund managers as London, but the two centres increasingly stand head and shoulders above the rest of the world.

ECONOMIST: Hedge funds

As a result, financial repression, say economists and fund managers at Schroders in London, is becoming as much a part of the new normal as is slow growth and deleveraging.

FORBES: Socialism 'No', But Financial Repression 'Yes'

That will place the pay of hedge fund managers in the City of London under regulation for the first time, the BBC's business editor Robert Peston said.

BBC: EU agrees bank bonuses limit deal

American fund managers say they are attracted to London as a less-crowded place where they can try different trading strategies.

ECONOMIST: Hedge funds

They say a radical overhaul of the commission system in Britain makes little sense when America, the world's largest equity market, will continue with today's arrangements, soft commissions and all. (Softing is more generous and more widely used in America than in Britain.) To have a different commission system from international peers would put British fund managers at a disadvantage, or so say London money-men.

ECONOMIST: Soft commissions in Britain

Some large institutional shareholders, such as the U.S. pension fund managers Calpers and TIAA-CREF together with Hermes of London, are asking companies to justify their pay policies or risk censure.

FORBES: I'll pay yours if you'll pay mine

As Asian economies flourish while Western economies flounder, bankers and fund managers have been packing up and moving to Asia from New York and London.

FORBES: A Rare Banker Heading East To West